pass through billing?


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I have a former physician who wants to bill for EMG services. The equipment will be brought into the office, the testing performed by a tech not employed by the physician, and read by another physican in another location not associated at all with this office. In other words my former physican merely provides the patient, the office space and billing staff, yet he bills as if he has performed the entire service. I consider this pass through billing as he has a contract with another group, bills the carrier as if he performs the service, pays the performing group and keeps the rest. This cannot be legal. Does anyone else agree? I have since severed my ties with this physician.